Nexxen Completes Stock Exchange and Trading Structure Changes

Rhea-AI Summary

Nexxen International (NASDAQ: NEXN) has completed its stock exchange and trading structure changes, consolidating to a sole U.S. Ordinary Share listing on Nasdaq. The company executed a 2:1 reverse split of Ordinary Shares on February 14, 2025, exchanged Nasdaq-listed ADRs for New Ordinary Shares, and terminated its ADR facility. On February 17, 2025, Nexxen's AIM-listed Depository Interests were delisted, and the New Ordinary Shares began trading on Nasdaq under 'NEXN' on February 18, 2025.

The company's $50 million share repurchase program will continue on Nasdaq until May 19, 2025, or completion. These changes aim to attract U.S. investors, increase trading volume, enable better peer comparison, improve financial data platform screening, and make shares eligible for select indices.

Positive

• Ongoing $50 million share repurchase program until May 2025
• Streamlined trading structure potentially improving U.S. investor access
• Enhanced eligibility for index inclusion

Negative

• 2:1 reverse stock split resulting in share consolidation

Insights

Financial Markets Analyst

The consolidation of Nexxen's listing structure represents a strategic move to enhance its market positioning and accessibility to U.S. investors. The 2:1 reverse split and transition to a sole Nasdaq listing eliminates the complexity of dual-listing arbitrage and should improve price discovery efficiency. This restructuring addresses several key market dynamics:

The simplified share structure carries multiple advantages:

• Enhanced institutional investor accessibility through improved screening metrics and potential index inclusion
• Reduced administrative costs and complexity from maintaining dual listings
• Better alignment with U.S. peer valuations, facilitating more accurate comparative analysis
• Increased likelihood of institutional coverage due to improved market structure

The continuation of the $50 million share repurchase program through May 2025 provides a supportive floor for the stock during this transition. The timing of this move is particularly strategic as it coincides with growing institutional interest in ad-tech platforms and increased focus on market efficiency.

For existing shareholders, the streamlined structure eliminates the previous ADR conversion fees and potential pricing discrepancies between markets. The consolidation should lead to tighter bid-ask spreads and improved trading dynamics, particularly beneficial for U.S.-based investors who previously faced additional complexity in trading ADRs.

NEW YORK, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Nexxen International Ltd. (NASDAQ: NEXN) (“Nexxen” or the “Company”), a global, flexible advertising technology platform with deep expertise in data and advanced TV, today announces it has completed its previously announced stock exchange and trading structure changes, streamlining to a full and sole U.S. Ordinary Share listing on The Nasdaq Stock Market effective today.

On Friday, February 14, 2025, the Company successfully executed a reverse split of its Ordinary Shares such that every two Ordinary Shares held at the time of the reverse split consolidated into one New Ordinary Share to facilitate a one-to-one ADR exchange. Thereafter, the Company exchanged its Nasdaq-listed ADRs for Nasdaq-listed New Ordinary Shares and terminated its ADR facility.

On Monday, February 17, 2025, the Company’s AIM-listed Depository Interests representing the Company’s Ordinary Shares were cancelled from admission to trading on AIM.

Effective this morning (Tuesday, February, 18, 2025) Nexxen’s New Ordinary Shares began trading on Nasdaq under the stock ticker “NEXN” (ISIN: IL0012165630 and CUSIP: M8T80P204).

Shareholders who desire to sell their New Ordinary Shares on Nasdaq should work with their broker to transact the sale.

Nexxen’s $50 million Ordinary Share repurchase program will continue on Nasdaq following the Company’s delisting from AIM and is currently expected to continue until May 19, 2025, or completion.

“We believe our evolved trading structure will strengthen our ability to attract U.S. investors, drive greater trading volume, enable a more direct comparison to the Company’s peers, improve our screening on financial data platforms and make Nexxen’s shares eligible for inclusion in select indices,” said Ofer Druker, Chief Executive Officer of Nexxen. “We believe these changes will benefit Nexxen and its shareholders tremendously over the long-term and we are excited to increase our presence and recognition within the U.S. market.”

About Nexxen

Nexxen empowers advertisers, agencies, publishers and broadcasters around the world to utilize data and advanced TV in the ways that are most meaningful to them. Our flexible and unified technology stack comprises a demand-side platform (“DSP”) and supply-side platform (“SSP”), with the Nexxen Data Platform at its core. With streaming in our DNA, Nexxen’s robust capabilities span discovery, planning, activation, monetization, measurement and optimization – available individually or in combination – all designed to enable our partners to achieve their goals, no matter how far-reaching or hyper niche they may be.

Nexxen is headquartered in Israel and maintains offices throughout the United States, Canada, Europe and Asia-Pacific, and is traded on Nasdaq (NEXN). For more information, visit www.nexxen.com.

For further information please contact:

Nexxen International Ltd.
Billy Eckert, Vice President of Investor Relations
ir@nexxen.com

Caroline Smith, Vice President of Communications
csmith@nexxen.com

Forward-Looking Statements

This press release contains forward-looking statements, including forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. Forward-looking statements are identified by words such as “anticipates,” “believes,” “expects,” “intends,” “may,” “can,” “will,” “estimates,” and other similar expressions. However, these words are not the only way Nexxen identifies forward-looking statements. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the anticipated benefits of the Company’s ADR exchange and termination, reverse split, AIM delisting and sole-listing on Nasdaq. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors that may cause Nexxen’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including, but not limited to, the following: that the anticipated benefits of the sole-listing on Nasdaq won’t be achieved in full or at all, or in the time frame expected; negative global economic conditions; global conflicts and war, including the war and hostilities between Israel and Hamas, Hezbollah and Iran, and how those conditions may adversely impact Nexxen’s business, customers and the markets in which Nexxen competes; changes in industry trends; and, other negative developments in Nexxen’s business or unfavourable legislative or regulatory developments. Nexxen cautions you not to place undue reliance on these forward-looking statements. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in the Company’s most recent Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (www.sec.gov) on March 6, 2024. Any forward-looking statements made by Nexxen in this press release speak only as of the date of this press release, and Nexxen does not intend to update these forward-looking statements after the date of this press release, except as required by law.

Nexxen, and the Nexxen logo are trademarks of Nexxen International Ltd. in the United States and other countries. All other trademarks are the property of their respective owners. The use of the word “partner” or “partnership” in this press release does not mean a legal partner or legal partnership.

FAQ

What is the impact of Nexxen's (NEXN) 2:1 reverse stock split in February 2025?

The reverse split consolidated every two Ordinary Shares into one New Ordinary Share, facilitating a one-to-one ADR exchange and streamlining the company's trading structure.

When did Nexxen (NEXN) delist from AIM and begin trading solely on Nasdaq?

Nexxen delisted from AIM on February 17, 2025, and began trading solely on Nasdaq under ticker 'NEXN' on February 18, 2025.

How long will Nexxen's (NEXN) $50 million share repurchase program continue?

The share repurchase program is expected to continue on Nasdaq until May 19, 2025, or until completion.

What are the expected benefits of Nexxen's (NEXN) sole Nasdaq listing?

The sole Nasdaq listing aims to attract U.S. investors, increase trading volume, enable better peer comparison, improve financial data platform screening, and make shares eligible for select indices.